Diwali spirit: Cabinet approves DA hike of 3%, MSP on Rabi crops raised
Diwali spirit: Cabinet approves DA hike of 3%, MSP on Rabi crops raised
M.U.H
16/10/202438
The Union Cabinet on Wednesday, headed by Prime Minister Narendra Modi, increased dearness allowance (DA) by 3% for central government employees to bring the key allowance to 53% of the basic pay. Information and Broadcasting Minister Ashwini Vaishna at the Cabinet briefing today announced an increase in Dearness Allowance (DA) and Dearness Relief (DR) from 50 percent to 53 percent, effective from July 1, 2024.
This decision is intended to help alleviate the impact of inflation and will benefit approximately 1.15 crore central government staff -- 49.18 lakh central government employees and 64.89 lakh pensioners. The last DA increase of 4% was announced in March this year. A finance ministry release stated the hike will be effective July 1, which means that employees and pensioners will also receive arrears for July, August, and September.
“This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be Rs 9,448.35 crore per annum,” the ministry said.
DA is adjusted biannually in January and July, based on the Consumer Price Index for Industrial Workers (CPI-IW) to reflect inflation trends. Similarly, pensioners receive DR following similar guidelines. The government increases dearness allowance (DA) twice a year, with changes effective from January and July. However, the official announcements are typically made in March and September. The January DA increase is usually announced around the time of Holi in March, while the July hike is typically declared around Diwali in October or November each year.
MSP hike on Rabi crops
The Centre has sanctioned a raise in the Minimum Support Price (MSP) for important rabi crops. According to Union Minister Ashwini Vaishnaw, the MSP for wheat has been increased by Rs 150 per quintal, reaching Rs 2,425 from Rs 2,275. Mustard has witnessed a spike of Rs 300, bringing its MSP to Rs 5,950 per quintal, and gram's MSP has been elevated by Rs 210 to Rs 5,650 per quintal.
The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, approved the increase in the MSP of six mandated rabi crops for 2025-26 marketing season in the range of Rs 130-300 per quintal.
The hike in MSP of crops is very crucial ahead of the elections in key states such as Maharashtra, Jharkhand and Delhi, scheduled in November. Rabi marketing season begins from April 2025.
"The major decision taken by the cabinet is related to the welfare of the farmers. Like in Kharif, there is a significant increase in the MSP for rabi crops," Vaishnaw said.
The minister announced that the support price for wheat has been raised to Rs 2,425 per quintal for the 2025-26 season, up from Rs 2,275 per quintal in the previous year.
In an effort to boost oilseed production, the cabinet approved an increase in the support price for rapeseed/mustard seed by Rs 300 to Rs 5,950 per quintal for the 2025-26 marketing season. The support price for safflower also saw an increase of Rs 140 to Rs 5,940 per quintal from Rs 5,800 per quintal in the previous year.
For pulses, the support price for lentil (masur) was raised by Rs 275 to Rs 6,700 per quintal, while the support price for gram was increased by Rs 210 to Rs 5,650 per quintal for the 2025-26 marketing season. Additionally, the support price for barley was increased by Rs 130 to Rs 1,980 per quintal for the 2025-26 rabi marketing season, up from Rs 1,850 per quintal in the previous year.
Varanasi-Pt. Deen Dayal Upadhyaya (DDU) Junction route
The approval has been granted by the Centre for a new railroad bridge over the river Ganga in Kashi, costing Rs 2,642 crore. The bridge will run through Varanasi and Chandauli districts in Uttar Pradesh, enhancing infrastructure for a major Indian railway corridor. This will extend India's railway network by an additional 30 km. The Varanasi-Pt. Deen Dayal Upadhyaya (DDU) Junction route plays a critical role in facilitating both passenger and freight traffic. The route experiences significant congestion, primarily due to its importance in transporting essential commodities such as coal, cement, and foodgrains. Additionally, it caters to the increasing demands of tourism and industrial sectors.
Hence, improvements to the infrastructure were necessary for the Varanasi-Pt. Deen Dayal Upadhyaya (DDU) Junction route, including the construction of a new rail-cum-road bridge over the Ganga River and the installation of a 3rd and 4th railway lines.
The lower deck of the bridge will accommodate four railway lines, while the upper deck will have a six-lane highway. This infrastructure project will connect the Northern, Eastern, and Western zones, leading to significant savings of Rs 630 crore per year on diesel imports, equivalent to around eight crore litres.